This is Kaiyo on a special review of the Bancor Protocol, before starting lets dive little bit, so whats is Bancor ?
Bancor protocol is an initiative of the Bprotocol Foundation, a nonprofit organization based in Zug, Switzerland.
And the bancor protocol ?
The Bancor protocol enables anyone to create a new type of cryptocurrency called a smart token, which can hold (and trade) other cryptocurrencies.
This allows the smart token’s contract to serve as its own market maker, automatically discovering it’s own price(s) and providing liquidity to other currencies, thereby removing the need for a second party in cryptocurrency trades.
Every smart token is always liquid at some price point.
So we are talking now about smart token's and we will see some of the use cases for smart tokens,
There are so many potential use cases for the Bancor protocol and smart tokens, like steemit the social media platform where everyone gets paid for creating and curating content.
With Bancor protocol everyone can also create smart tokens that serve as the method to purchase their work or attend a show.
These smart tokens serve as their own distribution medium (so the artist & buyer don’t pay a commission to any middleman),
can be easily exchanged between people, and can be set up such that the price will rise as demand rises.
Raising approximately $153m in ether the native currency on the ethereum blockchain, as part of a crowdsale that concluded today.
- Picture https://etherscan.io/
We know that most startups raise money from investors or through selling stock on public markets, but Bancor found investors through Initial Coin Offering, this is a new way to raise funding so whats is ICO - Initial Coin Offering ?
An initial coin offering (ICO) is a means of crowdfunding the release of a new cryptocurrency. Generally, tokens for the new cryptocurrency are sold to raise money for technical development before the cryptocurrency is released. Unlike an initial public offering (IPO), acquisition of the tokens does not grant ownership in the company developing the new cryptocurrency. And unlike an IPO, there is little or no government regulation of an ICO.
At the end Bancor raised 396,720 ETH, which at the current ETH prices are worth $149.5 million, just in few hours !
Thank you for all the support, we are humbled. We'll release a statement w/ breakdown of the token allocation in the next few hours. #Bancor
It's about time, yes Bancor also benefited from good timing due to the price of ETH has been surging lately and currently sits at $379.21, compared to last year.
Please share with us your comment and thanks.